Free Types of Life Insurance Policies Study Guide
Utah Life exam — Types of Life Insurance Policies.
The national guide covers the kinds of life insurance and how they work. The Utah questions in this area are about group life (Utah Code 31A-22-501 and following) and variable contract licensing. This guide covers both. Survivorship rules are noted at the end.
Group life
Eligibility and dependents
- All employees, or all of any class of employees, must be eligible under an employer group life policy (31A-22-502).
- Group life may cover the employee's spouse and dependent children (31A-22-511).
Required provisions
| Provision | Utah rule |
|---|---|
| Grace period (31A-22-513) | At least 31 days after the first premium. Coverage continues unless the policyholder gives advance written notice of discontinuance. |
| Incontestability (31A-22-514) | An insured's statement can be used only if it's written and signed. It can't be used after the coverage has been in force 2 years during the person's lifetime. |
| Total disability (31A-22-520) | Coverage continues for up to 6 months from the date of total disability, or until the policy's disability provision approves continuation, if sooner. |
Conversion
| Situation | Utah rule |
|---|---|
| Employment ends (31A-22-517) | An individual policy without proof of insurability, if the person applies and pays within 31 days |
| Death during the conversion period (31A-22-519) | The convertible amount is paid as a group claim |
| Group policy ends (31A-22-518) | The individual policy needn't exceed the smaller of the lost coverage (less new group coverage within 30 days) or $10,000 |
Variable contracts (31A-23a-206)
- To add the variable contracts line, a producer needs:
- the life line
- a Utah securities license as a broker-dealer or broker-dealer agent
- The variable line is cancelled the day the securities license stops being active.
Survivorship (second-to-die) policies
- Incontestability runs during the surviving insured's lifetime (31A-22-403).
- The suicide provision applies if, within 2 years of issue, all insureds die by suicide or the surviving insured does (31A-22-404).
Common exam traps
- Group life grace period: 31 days. Conversion within 31 days.
- When the group policy ends, conversion can be capped at $10,000.
- Total disability continuation lasts up to 6 months.
- A variable license ends the day the securities license does.
Practice Types of Life Insurance Policies questions All Life topics
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
